The payment of an account payable would:
A)increase owner's equity.
B)decrease owner's equity.
C)have no effect on total assets.
D)have no effect on owner's equity.

Question

Quizplus · Accepted Answer

Paying off an account payable affects the company's cash balance and its accounts payable, but it does not directly affect the owner's equity. It is a swap between the types of assets (reducing cash) and liabilities (reducing accounts payable), keeping the owner's equity unchanged.

The Payment of an Account Payable Would